Could zonal pricing be the solution to reducing energy costs while enhancing grid resilience through a decentralized system? Although the second REMA consultation dismissed nodal pricing in the wholesale market, zonal pricing is still being considered as an option for the UK. As the electricity system transitions toward a more decentralized model, what changes are necessary to support the integration of millions of new assets, and how can the system evolve to ensure this transition is successful?

In today’s episode, Sarah Honan, Head of Policy at the ADE joins Ed porter. Over the course of the conversation, they discuss:

The debate on zonal vs. national pricing under a new Labour government.

Key features of successful demand flexibility implementation.

The ADE's position on locational pricing, highlighting its potential to reduce congestion payments and benefit consumers.

Potential impacts of locational pricing on existing investments.

The ADE’s recent report, Demanding More, the importance of NESO to implement a strategic and inclusive approach, considering the needs of both current and future consumers.

Mentioned in the episode

Demanding More - How the National Energy System Operator Can Empower Energy Demand.

Decentralised Energy Conference - 30th October 2024, The British Library, London

About our guest

The Association for Decentralised Energy (ADE) is the leading trade association for decentralised energy, representing more than 150 interested parties from across the industrial, commercial and public sectors. With the goal of advancing the widespread adoption and integration of decentralized energy solutions for a sustainable and resilient energy future, ADE is on a mission is to champion the transition from traditional centralized energy systems to a decentralized model. For more information, check out their website.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place.

Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on the capacity market and government policy and regulations, check out our written research.

Locational pricing and decentralized energy with Sarah Honan (Head of Policy @ The ADE)

Transmission